Annuity Income Illusions

Written By Don McDonald

One of the insurance companies big fibs is the immediate annuity income illusion. While they claim to provide an income of 5%, you are getting nothing close to an actual 5% return on your investment.

Insurance salespeople want you to believe they pay more and are safer than they are. We share the real returns you can expect from the safest of annuities and it's not very much.

Sticking with insurance, we take a question about ads from a firm called LifeRates of America.

Then we field more listener questions on

  • How an expat can open a Roth IRA in the US.

  • The best portfolio allocation (again).

  • The difference between "A" and "C" mutual fund shares.

  • The proper allocation between taxable and tax-advantaged accounts.

Don McDonald
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